Australian Homeowners Have Gained $230,000 in Equity Over the Past Five Years

Property owners across the country have quietly built up a significant windfall. On average, homeowners have seen the value of their properties increase by $46,000 each year since 2020. Over five years, that adds up to a substantial $230,000 gain.

In this article, we’ll look at how that rise in home equity came to be, how it compares to previous market surges, and how you might be able to make practical use of that increased value.

What’s Happened Since 2020

A lot has changed over the past five years. From a global pandemic and political shifts to major weather events across Australia, the world has been anything but predictable.

Amid all that change, there’s a good chance your personal situation has evolved too. You might have switched jobs, welcomed new family members, or made lifestyle adjustments.

Throughout it all, your property’s value may have been steadily climbing in the background.

A 39% Rise in National Home Values

New figures from CoreLogic reveal that property prices across the country have increased by 39.1% over the past five years. That brings the national median home value to $820,331.

In dollar terms, this translates to an average increase of $230,000 in just half a decade.

What makes this gain interesting is not just the percentage increase, but how it stacks up in actual value. While 39% might seem modest compared to previous market booms, the dollar amount is far more significant.

Take Sydney, for example. Between 1998 and 2003, home prices jumped by 78%. Melbourne saw a 79.5% rise in the early 2000s. Other capital cities like Brisbane, Perth, Adelaide, Hobart, and Canberra experienced their biggest five-year growth periods in the mid-2000s, with values roughly doubling.

But property prices were lower back then. So while percentage gains were higher, the actual increase in dollar terms was not as strong as what we’re seeing now. According to CoreLogic, the average increase during the early 2000s peak was around $140,000. That’s nearly $90,000 less than the current average.

How to Use That Equity

That $230,000 gain doesn’t have to just sit on paper. It represents a real opportunity.

If you owe less on your mortgage than what your home is now worth, you’ve built up equity. This gap between your loan balance and your home’s market value can be used as a financial tool.

Many homeowners tap into their equity for all sorts of reasons. It might be to renovate, upgrade the kitchen or bathroom, invest in another property, refinance to a more competitive rate, or even fund a family holiday. The key is to make sure you're using it wisely, with a strategy that supports your long-term goals.

Want to Explore Your Options?

If you're curious about how much equity you've built up or you're exploring what it could help you achieve, a quick conversation can make all the difference.

Osinski Finance helps Australians tap into the potential of their property by offering a full range of services, including home loans, refinancing, investment property finance, renovation funding, and debt consolidation. We’ll walk you through the numbers and help you explore tailored options based on your goals.

Reach out today and see what your equity could do for you.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.